1. 9th ARAC EXCO Meeting in Taiwan Korea Adhesive Market Overview October 28th, 2011 Korea Adhesives Industry Association

2. Korea Adhesives Market - Overview ♦ Domestic market in 2010 * Estimated Market : 598,050 MT Market Value : 1,220 Million US$ Average Growth : 5.2% * Export (16%↑) : 32,541 MT (224 Million US$) * Import (15%↑) : 23,532 MT (223 Million US$) ♦ The market showed healthy growth by increasing demand from automotive and E/E application but dominated by multinational adhesives companies. ♦ Expected growth rate will be down due to European economic turmoil, and increased cost of raw materials & energy, along with strengthened environmental laws & regulations.

3. Korea Adhesives Production by Product’s Type

4. KOREA ADHESIVE PRODUCTION & GROWTH RATE Source : KAIA

5. Korea Adhesives Production by Application Source : KAIA

6. KOREA ADHESIVE MARKET SEGMENTS & GROWTH RATE Source : KAIA

7. Korea Adhesives – Export Source : KNSO 7

8. Korea Adhesives – Imports Source : KNSO 8

9. MARKET TRENDS AND NEEDS ♦Key success factors for adhesives are Environmentally Friendly and Higher Performance/Functional due to increasing demand of the markets ♦ Focus more on Environmentally Friendly Adhesives, i.e. Non-Solvent Based, Water Based Emulsion, Hot-Melts, and 1or 2 Phase Reactive ♦ High Performance/Functional adhesives demand are rapidly increasing from automotive and E/E markets but dominated by multinational adhesives players. Local Korean companies or big Korean conglomerate entering into this market recently. ♦ New innovative products in waterborne, hot-melt, photo-curable, room temperature or low temperature curing, non-solvent and high-solid content products will get the higher attention for technical development.

10. Appendix 10

11. PRODUCTION OF ADHESIVES IN KOREA. (1)

12. PRODUCTION OF ADHESIVES IN KOREA.(2)

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